Rio Tinto (RIO) shares edge higher after 4Q report
Stock
Rio Tinto (RIO) $105.14 as at 17/01/2020
Event
Out today with their December quarter production numbers and the stock is trading higher on the back of a reasonable effort for the full year. The two key production areas were all in line with guidance, while FY20 shaping up to be another sound year based on the guidance.
Iron ore production at 326.7mt was down on last year after some operational issues through the year but a touch above the midpoint of revised guidance which the market liked. Copper was in line at 577kt however the December quarter run rate was a bit behind on lower quality mined. Elsewhere the Aluminium deck was close to expectations, while titanium dioxide production missed on South African closures as a result of safety issues.
On first read, the numbers print pretty well without exactly shooting the lights out. The same goes for FY20 with Aluminium and TiO2 expected to be flat year on year, copper slightly behind and iron ore and Bauxite higher than 2019. Iron ore guidance bets production to return to levels near the record 2018 year where Rio shipped 338mt.
Rio Tinto (RIO) Chart
Market Matters Take/Outlook
